UBS pays state agencies $541,000

As a part of a 2011 multistate settlement, UBS AG will pay Connecticut entities $541,000 in restitution payments for alleged anti-competitive and fraudulent conduct.

Attorney General George Jepsen helped lead the investigation that found the Stamford-based Swiss bank had been engaged in deceptive schemes to rig bids on municipal bond derivatives.

The payments are a part of the $90.8 million settlement among UBS and 24 states, in addition to the District of Columbia.

“Connecticut government and not-for-profit entities are receiving rightful compensation for their losses arising from the wrongful conduct,” Jepsen said in a press release. “A large amount of the funds entrusted to UBS AG was taxpayer money, which UBS steered into rigged or tainted municipal derivatives contracts.”

Those receiving payments include the state government, the cities of Stamford, Bridgeport and Norwalk, as well as the Connecticut Housing Finance Authority, Hospital of Saint Raphael and others.